Morgan Creek Digital Assets Co-Founder Holds Half His Wealth in Bitcoin, Doubles Down on $100K Prediction
Anthony ‘Pomp’ Pompliano is an investor who puts his money where his mouth is.
Pomp Goes Long on Bitcoin
Pompliano is the co-founder of Morgan Creek Digital Assets and a regular commentator on the market behavior of bitcoin and cryptocurrency. In an interview with Cointelegraph, the American investor revealed that he holds 50% of his wealth in bitcoin.
When asked to explain his investment strategy, Pompliano said that risk is relative to each investor and claimed to be as wary of fiat as others are of bitcoin.
“I would make the argument that having 100% exposure to fiat currencies is a really bad idea. Right? Because if one of those fiat currencies that you have 100% of your wealth in either hyperinflates or fails, you’ve got a lot of problems.”
Despite having half his wealth tied up in bitcoin, Pompliano emphasized the need for diversification, including branching outside of fiat. Pomp finds bitcoin’s security measures to be far beyond the capability of government-backed currencies, leading him to conclude that “bitcoin will one day be the global reserve currency of the world.”
Bitcoin is the realization of @nntaleb‘s Black Swan theory.
It is a rare, unpredictable event that has significant upside potential for those that are prepared & seize the opportunity, while also seeming obvious in hindsight.
Simply, Bitcoin is the bet of a generation.
— Pomp 🌪 (@APompliano) July 6, 2019
Pomp argued that bitcoin is a “defense-first” currency, which focuses on having an immutable computing network. The emphasis on defense is also the reason that bitcoin will survive when other currencies fail.
“In [a]cyber driven world, the things that previously allowed a nation-state to control the global reserve currency–military superiority, economic sanctions, etc–all of the sudden are much less effective, and what I believe is going to occur is the country or the monetary system that has the greatest defense actually is in a position to dominate.”
Predicts $100,000 BTC by 2021
Pompliano is known for his bold prediction that bitcoin will reach $100,000 by the end of 2021. He stood by his claim in the interview and explained that bitcoin’s fixed supply will lead to exponential gains over the next two years,
“The prediction here is simply based on bitcoin being an asset that has a fixed supply and a belief that supply and demand economics will continue to remain valid. Anytime you have a fixed supply asset and demand increases, then the price has to go up.”
In terms of what will contribute to increased demand, Pompliano pointed to the behavior of central banks and a looming recession on the horizon to lower investor confidence in fiat. He also claimed the global instability of trade wars, such as the one brewing between China and the US, would lead to further bitcoin adoption.